Bigger is better in CEE
This was a 26-percent growth on the value of M&A deals in 2004, which was a record-breaking year, when growth reached 120 percent.
In 2005 the number of transactions with a value exceeding $100 (zł.308) million doubled. There were 14 such transactions, with a total value of $4 (zł.12) billion. The average value of the revealed transactions slightly increased and reached $30 (zł.92) million.
In 2005 foreign investors participated in 124 M&A deals in Poland and their value constituted one third of the country's entire M&A market. Germany was the leading investor, completing 17 transactions. Polish investors are also becoming more active in CEE, especially in Romania, Ukraine, Czech Republic and Hungary. In 2005 the number of transactions completed by Polish companies in the CEE region increased to 26 from 10 the year before. The biggest such transaction was the Polish Enterprise Fund taking over the Romanian Artima for $28 (zł.86) million.
Among the biggest transactions in Poland were: the acquisition of 34 percent of PTK Centertel by Telekomunikacja Polska from France Telecom for $1.5 (zł.4.6) billion; BNP Paribas buying four shopping centers for $533 million (zł.1.6 billion); and Mid Europa Partners taking over Aster City Cable for $500 million (zł.1.5 billion).
Last year Poland was the CEE leader when it came to privatization transactions. Some 114 privatization deals were completed with a total value of $1.34 (zł.4.1) billion. The two biggest privatizations were the sale of Steelworks Częstochowa to the Ukrainian Industrial Union of Donbas (ISD) for $375 million (zł.1.2 billion) and the sale of 61 percent of the shares in Polmos Białystok to Central European Distribution Corporation for some $315 (zł.970) million.
In the CEE region the total estimated M&A deal value in 2005 was $91.2 (zł.280) billion - double 2004's figure. "Mega-transactions play a more and more significant role. Fifteen percent of all deals had a value of over $100 (zł.308) million," said Jolanta Kokosińska from PWC.
Russia is a leader in the region as the country represents half of the total CEE market value of M&A deals. These are mainly domestic Russian deal, which Kokosińska says is significant, as CEE in general suffers from a lack of its own capital.
